topic Self Employment Health Insurance premiums in Self employed

Self Employment Health Insurance premiums

jandmn — Fri, 13 Feb 2026 20:22:46 GMT

I am retired (not on Medicare) and pay my previous employer for health insurance for me and my spouse. The insurance is not COBRA but is a group plan that I purchase, with post tax dollars, through my previous employer as a part of my retirement benefits. I currently work part time as an independent contractor and get paid through a 1099. The premium cost is less than my consultant income. Can I deduct the insurance premiums from my consultant income?

Re: Self Employment Health Insurance premiums

KrisD15 — Fri, 13 Feb 2026 20:25:44 GMT

Yes and No

Self-Employed health insurance costs can be deducted, but it is only expensed up to your self-employment income. It cannot create a loss.

Re: Self Employment Health Insurance premiums

jandmn — Fri, 13 Feb 2026 20:33:58 GMT

I'm using TurboTax desktop which gives the following statement before entering my numbers...

"If you or your spouse could participate (even if you declined coverage) in an employer's health plan at any time during a given month, you cannot take the deduction for that month."

Does this NOT apply to my situation? Just want to be clear.

Re: Self Employment Health Insurance premiums

DaveF1006 — Fri, 13 Feb 2026 21:58:19 GMT

Yes, you can take the Self-Employed Health Insurance (SEHI) deduction. The IRS rule disallows the deduction only if the employer plan is available to you as an active employee or spouse of an active employee. A retiree plan is not an active‑employee plan.

You can take the SEHI deduction as long as:

You have net self‑employment income
The premiums do not exceed that income
You are not eligible for any other employer plan (your spouse’s employer, for example)

Re: Self Employment Health Insurance premiums

jandmn — Sat, 14 Feb 2026 21:06:20 GMT

Thank you. Those are missing details I needed.